To successfully implement an ERP system, drafting the requirements specification is very often the first step. This makes it possible to define the project’s objectives, features, constraints, and requirements. The document also helps you communicate effectively with stakeholders and evaluate vendor proposals.
However, drafting an ERP requirements specification can be a challenging task, especially if it is your first time. That is why it is often useful to refer to examples and templates for inspiration and to understand best practices. To help you with this task, we will explore a few best practices to follow when drafting your own document. We will see how these examples can improve the definition of functional and technical requirements and help you better evaluate vendor proposals, particularly with regard to all costs related to ERP implementation.
How can you get an ERP requirements specification template?
If you want a customized ERP requirements specification tailored to your needs, you can call on a specialized consultant, but you can also draw inspiration from existing templates by reusing the essential sections and adding your own elements.
There are many generic templates online, and sometimes even ERP requirements specification templates that are paid for in some cases and free in others. Here is a free example to download from this site.
Pitfalls to avoid when drafting your
ERP requirements specification
Next, to ensure that drafting the requirements specification does not become overly complex, it is important to avoid the most common pitfalls if you want to guarantee the effectiveness of the process. Here are a few points to watch out for:
- Lack of clarity and precision: an imprecise requirements specification can lead to misunderstandings between stakeholders. Make sure the specifications are clear and detailed.
- No involvement of end users: end-user engagement is necessary, and their absence from the drafting process can lead to a final product that does not meet expectations.
- Underestimating training and support needs: an ERP system often requires substantial training for proper adoption, as well as ongoing support. Omitting these aspects from the requirements specification can cause difficulties when users adopt the system.
- Underestimating integrations and incompatibilities: it is essential to assess how the ERP system will integrate with the other systems already in place, and what technology will be used for data exchange interfaces. A lack of compatibility can lead to additional costs and complexities.
- Overlooking security and compliance aspects: the requirements specification must address security and compliance requirements to protect data and comply with relevant regulations (GDPR, for example).
- Underestimating scalability: the ERP system must be able to grow with the company. The requirements specification must allow for future adjustments and expansions without excessive additional cost.
- Poor definition of the commercial framework: the requirements specification must include clear contractual clauses to govern the relationship with the service provider and avoid misunderstandings.
What is the ideal format for an ERP requirements specification?
The ideal format for an ERP requirements specification obviously depends on the complexity of the project and the specific requirements for service providers. However, there are a few general best practices to follow. The first is to structure the requirements specification into clear, organized sections that follow a logical thread and present the information consistently.
Here is the generic structure of an ERP requirements specification that we recommend:
- Introduction and context
– The introduction should present the company, its business activity, and its business management needs.
– Describe the objectives of the ERP project and the reasons behind the implementation of a new system.
– Explain the project context, specifying the existing systems and the required interfaces. - Analysis of the current situation
– Describe the company’s current business processes and the systems used to manage them.
– Identify the strengths and weaknesses of the existing systems.
– Define the main expected changes in the new ERP system compared with the current situation. - ERP project specifications
– Describe the expected ERP features in detail.
– Specify precisely how they relate to the company’s management processes.
– Define the technical and budgetary constraints associated with these elements. - Implementation plan
– Describe the desired stages for implementing the ERP system so that service providers can explain their methodologies precisely.
– Define the timeline and the resources that will be allocated within the company.
– Establish the foundations of the internal communication plan and the required training. - Vendor selection
– Define the selection criteria for the new ERP system and the process for selecting service providers.
– Establish a clear and understandable proposal evaluation grid to quickly rule out unsuitable solutions. - Contract and terms
– Define the key elements of the contract with the ERP vendor.
– Describe the warranty terms and the expected levels of support and maintenance.
– Define the payment terms based on the project milestones. - Possible appendices
– Glossary of technical terms.
– Additional explanations about certain processes, screenshots of the current system.
– Diagram of the current/target information system.
It is important to note that this template is an example and must be adapted to your needs. As for the document format, it is generally preferable to submit the ERP requirements specification to vendors in PDF format. This ensures that the document’s formatting will be preserved and that vendors will be able to read it easily.
In addition to these sections, you can also include in your requirements specification and in your selection process the completion of a POC (Proof of Concept). This allows you to go further in the feasibility study and risk analysis.
By using these elements, you will be able to ask all the relevant questions to structure your ERP project and help ensure its success. Feel free to download our guide as well to explore this topic further :
